The general rules for the Foundation's guarantee are contained in its prevailing General Business Conditions and the accompanying Publication and Guide.
The detailed conditions for guarantees are included in the General Conditions of Contract for Guarantees attached to the Guarantee Application Form and the Letter of Guarantee together.
Institutional guarantee is some kind of collateral for bank loans and other financial products. It is aimed to facilitate to obtain credits by enterprises and to mitigate the exposure of financial institutions so that the Foundation undertakes to pay 20 to 80 per cent of the amount payable by a customer to the bank if the customer fails to honour his payment obligations. Legal form is on-demand guarantee.
The guarantee is applied for by financial institutions from the Foundation when an enterprise has no sufficient funds. The guarantee is related to loans, bank guarantees, leasing or factoring deals (hereinafter collectively: loans).
The amount guaranteed ranges from 20% to 80% of the amount of the contract secured by the guarantee.